Jean Redfield, President and CEO of Ann Arbor Spark, gave a presentation at the Michigan Energy Forum on April 4, 2013. She discussed NextEnergy's role in accelerating advanced energy investment and jobs in Michigan. She then covered Michigan's energy policy framework, focusing on how policy relates to laws, rules, and funding streams. Finally, she examined key Michigan policy issues regarding transportation, natural gas, and electricity and the state's transition to more sustainable options.

1. Michigan Energy Forum: Ann Arbor Spark
April 4, 2013
Jean Redfield, President & CEO
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2. Outline
 NextEnergy Overview
 Energy Policy Framework
 Michigan policy issues
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3. NextEnergy Overview
Accelerate
Advanced Energy
Investment & Jobs
in Michigan
Industry & Venture Development
Value Add Services
Market
Technology Public Sector
Services
Demonstration & Leadership
• Vet technology Commercialization
• Inform policy leaders
• Consult with businesses
• Shape funding priorities
• Create matchmaking • Host partners
• Encourage incentives
and partnership • Build consortium
• Remove market barriers
opportunities • Develop programs
• Provide access to • Secure funding
funding • Build and run
• Publish and iterate
People NextEnergy staff and contributor network
Assets
Place NextEnergy’s testing, demonstration, laboratory, conference, and
executive office space
Relationships Industry; State, Federal; Universities; Philanthropy; Economic
Developers; Entrepreneurial Ecosystem; Ventures
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4. Energy Policy Framework
 What do we mean by “Policy”?
 Laws
 Rules
 Funding streams
 What do we mean by “Energy”?
 Electricity: Power
 Natural Gas: Heating Fuel
 Petroleum: Transportation Fuel
 Why does it matter?
 Energy as “backbone” of economy
 Energy as driver of quality of life
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5. MI Aggregate Energy Use (1960-2009)
MI’s energy portfolio has always been a mix
Total Energy Use in MI
(Includes Primary Energy used in Electricity Generation)
Source: EIA, DOE
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6. MI Aggregate Energy Use by Sector
Energy Used by Sector in MI
Electricity use and losses are included in each sector
Source: EIA, DOE
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7. Michigan Energy Usage
“Preferred” View
Energy for Electricity
100% = 1,413 Trillion BTU
5%
Total Energy Use 8%
100% = 2,798 Trillion BTU
Transportation 12% Coal
26%
Natural Gas* Nuclear
Electricity 23% 53% Renewable
Natural Gas
22%
Petroleum
51%
Michigan Energy Usage, Trillion BTU (2010)
* Natural gas data excludes natural gas used in vehicles
(Transportation) and to generate electricity (Electricity)
Source = EIA/ DOE
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8. Energy Policy Framework: Summary
Policy Definition: Laws Rules/ Regulations Funding Streams
Transportation Formation of RTA DOT: CAFE Roads, Bridges,
Gasoline Taxes EPA: Emissions, Ports, Waterways,
NHSTA: Safety Rail, Airports, Land
Vehicle registration use/ development
Natural Gas Michigan: Acts 61 E&P Permits Reliability upgrades,
(1939), 451 (‘94) (Wellhead Connection Supply contracts,
US: NGPA (‘78), 436 Permits), MPSC rates E&P Investment,
(‘85), Wellhead and program design Energy Efficiency
Decontrol (‘89) and Investment
636 (‘92)
Electricity Enabling legislation MPSC rates and Power Plants/
(Chapter 460), Energy Optimization generation,
Choice (PA141, program design, FERC Reliability upgrades,
286), Renewable transmission Energy Efficiency
Portfolio Standard investments
(PA295)
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9. Energy Policy: Two Simple Questions
 How Much?
 Energy intensity: per capita, per GDP output
 What Mix?
 Economic Competiveness: Near term costs/ long term
costs; Economic upside as innovator in the transition
 Environmental Responsibility: Fossil fuels/ GHG/ Other
emissions; Extraction/ transportation/ use impacts
 Social Value:
 Energy Security: Deplete-able/ Renewable; Michigan/
US/ Global
 Quality of life: Built environment, Transportation, Equity
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10. US Energy Intensity vs. China/ Europe
Per Capita: US is 2 to 6 X Per GDP: US is 2X more
more intensive than intensive than Europe,
Energy Intensity: China or Europe Energy Intensity: and 80% of China
kgoil equivalent per capita kgoil equivalent per unit output*
9000
0.35
8000
0.30
7000
6000 0.25
China
5000 Denmark 0.20
Germany
4000
USA 0.15
3000 Canada
0.10
2000
1000 0.05
0 0.00
2004 2009 2004 2009
* kilogram of oil equivalent of energy use per PPP GDP(gross
domestic product converted to current international dollars using
purchasing power parity rates)
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11. Michigan Transportation Policy Issues
 Implicit strategies support Autos
 Ubiquitous and cheap roads and gas
 Economic development and mortgage deductibility
favor “sprawl”
 Global markets demanding new options
 Vehicles: Alternative fuels, higher mileage
 Development: Mixed use, higher density
 New Mobility: systems rather than personal autos
 Challenges for Michigan: Transition from “Auto
Capital” to Innovation Leader in Transportation
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12. Michigan Natural Gas Policy Issues
 Global market for Natural Gas vs. local
Michigan supply
 Near term/ long term tension as developing
world develops
 Extraction and transportation technologies vs.
environmental protection goals
 Natural Gas Energy Efficiency in the current
built environment
 Natural Gas as a transportation fuel
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13. Michigan Electricity Policy Issues
 Economic impact of increased renewables?
 Age and makeup of fleet: coal, nuclear
 Regional Market Dynamics
 Role of Energy Efficiency
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